Businesses and financial institutions have been implored to institute robust security systems and surveillance in order to be fraud-protected.
The call by the Country Chief Inspector of the United Bank for Africa (UBA), Chiedu Okonta, has become necessary, due to the increasing cases of fraud recorded in the financial sector.
A 2014 PWC report showed that a typical business loses 5% of annual revenues due to fraud.
When this is applied to global GDP, the result is an estimated $3.7 trillion in annual fraud losses.
This report also indicated only 14% of businesses are able to fully recover from unauthorized transactions and other fraudulent activities.
The rising costs of fraud as a percentage of revenues present a cause for concern to the global economy.
As part of efforts to nib this canker in the bud, the financial sector has been presented with two books on the subject matter.
The books ‘Stamp out Fraud from your Stem’ and ‘Keys to Sustainable SMEs’ are thought-provoking on combating fraud and assisting with SME development.
“I have written these books after many years of careful practice and surveillance. I am optimistic that it will be a reliable guide for SMEs who want to grow, and also support large businesses to be able to withstand fraud,” he said.
Regional CEO of UBA Abiola Bawuah charged banks and financial institutions to develop security models that can overpower the sophistication with which fraud is perpetuated.
“These fraudsters become sophisticated by the day, and it behoves on us, to also be a step ahead of them. For all the many years that I have known Chiedu, I know he’s got the right expertise to write a book that can provide solutions for fraud.”
The books are currently available in all leading bookshops.